Why am I not offered credit in all physical stores?

Many more suppliers should offer goods on invoice than those who have this offer today. With good credit solutions you are guaranteed to increase sales.

As a consumer, I get credit from many of my suppliers today. But not all. Home and car loans are obvious to most of us, but take a look at your e-invoice and your contract giros in the online bank. There, I think you will find: Web and power, telephony, broadband, insurance, alarm, fitness centers, Netflix, Apple, Google and HBO to name the most common. Common to everyone is that you get the item first and pay afterwards.

This is not a coincidence – all these suppliers know that their customers are leaving more money when they can shop on credit.

When I check my bank statement I also find large monthly payments for food, clothing and consumer electronics. Although we are writing 2018, I am still surprised that it is only the online stores among these suppliers that offer me to shop on invoice – ie credit. What is this store understood by the others?

 

Physical stores get the best from the online stores

online credit

Good online stores eat bad online stores and good physical stores eat bad physical stores. Those who win are the players who offer the best customer experience, whether online or physical. We believe that online and physical stores will simply merge into a common “concept of commerce”. Physical stores have the great advantage that they can borrow the tools from the online stores, but this is not as easy the other way around. In other words, it is about creating good trading experiences in the form of good products, solutions, service, availability and, not least, good payment solutions.

 

Easy payment

loan payment

For example, suppose you order a drone in the online store that you have long wanted. On the way home from work, you drive to the physical store to take it home with you. In the shop they have offers of extra batteries. Here, it should have been a seamless opportunity for me to avail myself of the battery offer, for example by having myself or the help of a store employee register the batteries on the same invoice as the drone. For me as a customer it would have been liberating easy, but for the supplier even better since I have now left 30% more money in the shop! A smart shop owner, sends me a nice message just before due and asks if I want to split the payment?

 

The invoice is dead – long live the invoice!

credit loans

Fortunately, this is happening less frequently. Good online shopping experiences are always on the invoice base: Get the item first, pay the page. This is highlighted as an explanation of why e-commerce is preferred by more and more of us. For many, an invoice means yellow letter girder delivered in a window envelope to your home in the mail. The invoice can be sent to you electronically as email, sms, in APP, e-invoice, or in the format you want to receive it yourself.

Payment solutions can be divided into four main categories to understand more about the mechanisms that affect customers:

  1. Pay now. Immediate payment by cash or card.
  2. Postpone the payment. Pay a little later for a fee
  3. Divide. Payment divided into installments over time.
  4. Trading account. For major or repetitive credits.

Think about all the good customer experiences that can be built, turn a quick bill over to something more “comfortable”, dentist, electricians, etc. etc. What if these providers also started thinking outside the box and could look at payment solutions designed for the “man in the street”?

We have previously written a blog about “pain of paying”. This is what all good cremans know. It is up to each customer how they choose to pay for the product or service. Credit is the lubricant in retail sales and the economy otherwise.

 

Incredibly powerful force that many stores today do not use

Incredibly powerful force that many stores today do not use

For example, suppose you go to the grocery store one Friday afternoon before serving the taco and forgot your wallet with the card, but you have a 200-patch in your pocket. Now you can trade for 200 dollar, but no more. Had you had the card, or better yet: That also the grocery trade offered you credit, as they did right up to the 1990s where they, for incomprehensible reasons, stopped “chalking up the goods” for their good customers … Why did grocery stores with credit on 1990’s? My biggest expense is food. I have four children and it goes with three breads, 3L milk and 500g butter every day. (in addition to everything else) these kids did, could be collected so I got the “discount”. But also the other benefits the store offers in the app?

More and more seniors are getting more debt. How do you clean it up?

More and more seniors are struggling with debt and unclear finances. Best Bank receives more inquiries from seniors who struggle to make everyday life go up. According to the latest Lindorff analysis in 2019, the number of collection cases associated with individuals over the age of 60 has increased by around 40 per cent since 2012. Experts expect this trend to continue.

This is a consequence of the changing lifestyle of the elderly. They travel more, have more leisure activities and generally a higher consumption than before. Several also choose to assist their children financially, says Luther Holmstald, Marketing Manager at Best Bank.

The transition to retirement life can be challenging for many. After a long working life, it is natural to have become accustomed to a lifestyle that may not be compatible with retirement. We see that more seniors are struggling with this transition, says Holmstald.

 

Get control – the first step is to get an overview

To get a good economy, financial overview is a prerequisite.

Many people do not have an overview of their debt. They often have the debt spread over several creditors and repayment plans. This makes it difficult to have a good overview and thus difficult to make good financial choices, says Holmstald.

At the heart of Best Bank’s work is to create a debt overview with the customer.

This is the first step to getting a better economy. Once you get an overview, it is easier to decide how to clean up the debt, explains the marketing manager.

 

The second step is to collect the debt

debt collect the debt

Many customers find it easier to report to debt when it is collected.

It is easier to deal with one creditor, with fixed installments, versus many smaller ones, each with their requirements at different times. We find that our customers get a better economy after collecting the debt in one place, Holmstald elaborates.

 

Collecting the loans provides predictability, but usually also better terms.

Collecting the loans provides predictability, but usually also better terms.

We have had several customers who feel they are getting better loan terms after refinancing. It’s often the small loans that are the most expensive and if you manage to get rid of the small loans then it’s a good step in the right direction, says Holmstald.

 

Housing loans are becoming more common among the elderly

home loan

One move that has become more common among the elderly over the past few years is to move the debt into the mortgage.

Many elderly people have paid down housing while also having consumer debt. Refinancing the home and moving the mortgage loans into the home loan will often lead to better terms. We can help you to assess whether this is a good solution for your finances, explains Holmstald.

 

Contact: – We can help

home loan

Best Bank are experts in private finance. If you need to clean up your own finances or want to know what options you have, the bank’s advisors are ready.

We have helped people in all different economic situations. If you come to us, we will help you get an overview and make good financial choices. Often it’s not the big colds that are needed, ”concludes Holmstald.